UPDATE: Wunderlich Securities Initiates Coverage on QR Energy LP with Buy Rating, $20 PT on Multiple Positive Factors

In a report published Wednesday, Wunderlich Securities analyst Abhishek Sinha initiated coverage on QR Energy LP QRE with a Buy rating and $20.00 price target. In the report, Wunderlich Securities noted, “We are initiating coverage of QR Energy, LP (QRE) with a Buy rating and $20 price target. QRE is an oil & gas upstream MLP headquartered in Houston, TX, having properties in the liquids-rich Permian Basin, Ark-La-Tex, Mid-Continent, and the US Gulf Coast. The company has a higher liquids proportion of 69% versus a peer average of 51%. With a liquids-rich portfolio, strong acquisition track record, and a solid coverage ratio backed by an affiliation with a drop-down sponsor, we believe QRE stands out with a compelling valuation that is materially mispriced versus its peers, offering a great entry point.” QR Energy LP closed on Tuesday at $17.73.